In a large bowl, combine 2-1/2 cups of flour, sugar, undissolved yeast and salt.
Heat water, milk, and butter until very warm (120°-130°).
Gradually add mixture to dry ingredients; beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally.
Add 1/2 cup flour; beat 2 minutes at high speed, scraping bowl occasionally.
With spoon, stir in enough remaining flour to make a soft dough.
Knead on lightly floured surface until smooth and elastic, about 8-10 minutes.
Place kneaded dough in a greased bowl, turning to grease top.
Cover; let rise in a warm draft-free place until doubled in size, about 30-60 minutes.
Shape, let rise and bake according to options